To think our living situation is better than shared ownership for us right now?

[autumnjumper]

We rent cheaply through a housing association. We are lucky. They are like gold dust. The idea of the scheme is that we could buy this house after a few years if we want but if not, we continue to rent at 80% of market value. Newly built two years ago, very small semi detached but has a lovely big garden.

We were looking at shared ownership as an idea for our step onto the ladder, but I’m struggling to see how it would be better?
We meet all the criteria and have a deposit together but all it means (thanks to the lovely interest rates) is that we pay the exact same amount per month on rent as we currently do, plus probably £400/500 for the 30 or 40% share. With shared ownership we would be responsible for all the repairs and everything related to the house whereas in our current position the housing association deals with the majority of stuff.

It’s a secure tenancy, we don’t hear from the HA only once in a blue moon and they never do inspections.

I can’t see how, despite the fact we’d own some of it, shared ownership is surely no more secure? All it would mean is that we have to put down a load of legal fees and pay more per month than we pay now, for a house of the same size. Sure we might make a bit of equity but also possibly not if house prices fall as some people reckon they might over the next two years

Am I missing something?

Nope, sounds like you have a fab set up to me.

Thank you

I wouldn't give up this tenancy for shared ownership. Lots of people seem to have regretted using this scheme to buy a property.

Keep saving.

Hell would have to freeze over before I would get involved in a shared ownership. No way.

Stay as you are @autumnjumper

I also wouldn’t bother. I rent, privately and have for years as I’m in the South East. I’m looking to buy (at 46), purely because I want something to pass down, and because I want a bit more security. I’m thinking of waiting though a few more years and heading back up north where I can actually buy a house not a flat. In your situation I’d put the money aside that you’d spend if you did a shared ownership, so if you do decide to buy in the future, you can look at fully owning and not shared. Plus you get used to paying more out. But then maybe you don’t ever have to buy, HA properties, like council are pretty secure. I did think they were giving out short term tenancies now not lifetime?

If you are to believe Ramit Sethi of How to Get Rich then home ownership under these circumstances would almost certainly be a big fat no!

No to shared ownership?

Thank you! Great tip. It’s hard atm isn’t it? Wishing you all the best when you do buy somewhere

If you bought your current place can you sell it or do you have to wait a set amount of time?

Depending on that answer I think I'd save up over a long period of time and largely pay for the house rather than large'ish mortgage and then sell and move on making a profit.

With interest rates if we bought this house we’d be paying a lot more a month than we do now.. like hundreds

Thanks. It certainly is, in the few years I’ve been saving for a deposit the repayments have gone up by hundreds of pounds. I just can’t justify spending half my salary on repayments for a flat. It’s depressing

The purpose of a rent to buy scheme is that you are supposed to be saving the difference between market rent and your discounted affordable/intermediate rent to enable you to put down a deposit and buy outright (with a mortgage) or shared ownership.

Many schemes countenance existing tenants being evicted at the end of the fixed term or a grace period if they don't exercise the buy option. Some housing associations will rehouse, others won't.

Some schemes do allow tenants to stay on often at an affordable rent, as you have said you can, but that is dependent on the original funding arrangements (these types of property are often partially funded by central government grants).

Your rent would go down if you entered into a shared ownership arrangement but I agree, interest rates make home ownership,in whatever form, not very attractive.

I also agree that the burden of being a home owner (shared or outright) with repairing obligations shifting from the landlord to you also isn't very attractive.

So if your landlord allows you to stay on an affordable rent, that's fine, but be prepared for them evicting you if your tenancy agreement allows.

Feel your pain! It’s repayments that are awful, the deposit is not a problem

OP similar here. My HA just put in a new boiler, windows and radiators. How much would that have cost be if I’d gone through shared ownership? My rent is approx £400 a month cheaper than what a 3 bed semi would go for private renting and the mortgage would be so much more expensive. I’m staying as I am!

Don’t blame you!